UNITED BANK OF INDIA, Hooghly v. I.T.O T.D.S,Hooghly., Hooghly

ITA 317/KOL/2013 | 2006-2007
Pronouncement Date: 29-04-2015 | Result: Allowed

Appeal Details

RSA Number 31723514 RSA 2013
Assessee PAN AAACU5624P
Bench Kolkata
Appeal Number ITA 317/KOL/2013
Duration Of Justice 2 year(s) 2 month(s) 14 day(s)
Appellant UNITED BANK OF INDIA, Hooghly
Respondent I.T.O T.D.S,Hooghly., Hooghly
Appeal Type Income Tax Appeal
Pronouncement Date 29-04-2015
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted A
Tribunal Order Date 29-04-2015
Assessment Year 2006-2007
Appeal Filed On 14-02-2013
Judgment Text
I.T.A. NO S . 317 318 & 319 / KOL ./20 1 3 ASSESSMENT YEAR S : 2006 - 2007 2007 - 2008 & 200 8 - 200 9 PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA A BENCH KOLKATA BEFORE SHRI P.K. BANSAL ACCOUNTANT MEMBER AND SHRI RAJPAL YADAV JUDICIAL MEMBER I.T.A. NO S . 317 318 & 319 / KOL / 20 1 3 ASSESSMENT YEAR S : 2006 - 2007 2007 - 2008 & 200 8 - 20 0 9 UNITED BANK OF INDIA .................................. .......... ........... ... .. .APP ELL ANT CHINSURAH BRANCH TOWN GUARD ROAD CHINSURAH HOOGHLY - 712 101 [PAN : AAACU 5624 P/ CALUO 1892 C] - VS. - INCOME TAX OFFICER ......................................... .. .... ... ... . RESPONDENT T.D.S. HOOGHLY AAYAKAR BHAWAN KHADINAMORE CHINSURAH HOOGHLY - 712 101 APPEARANCES BY: SHRI SIDDHARTHA PRATIM DUTTA ADVOCATE FOR THE ASSESSEE SHRI ANJAN PRASAD ROY J CIT SR. D.R. FOR THE DEPARTMENT DATE OF CONCLUDING THE HEAR ING : APRIL 2 9 2 01 5 DATE OF PRONOUNCING THE ORDER : 29.04 . 201 5 O R D E R PER P.K. BANSAL : TH E S E A PPEAL S HA VE BEEN FILED BY THE ASSESSE E AGAINST THE ORDER S OF LD. COMMISSIONER OF INCOME TAX (APPEALS) - XXX V I KOLKATA ALL D ATED 0 3 . 12 .20 1 2 FOR THE ASSESSMENT YEAR S 2006 - 2007 2007 - 2008 & 200 8 - 0 9 . 2. THE ONLY ISSUE INVOLVED IN THESE APPEALS FILED BY THE ASSESSEE AGAINST THE ORDER OF LD. CIT(APPEALS) WHERE THE ASSESSEE FAILED TO DEDUCT TDS ON THE INTEREST PAYMENT S IN EACH OF THE ASSESSMENT YEA RS EVEN THOUGH SUCH INTEREST PAYMENTS WERE SUPPORTED BY FORM 15G AND 15H. THE AMOUNTS OF THE INTEREST ARE RS.69 34 824/ - RS.1 16 91 058/ - AND RS.2 21 58 158/ - IN EACH OF THE ASSESSMENT YEARS RESPECTIVELY. I.T.A. NO S . 317 318 & 319 / KOL ./20 1 3 ASSESSMENT YEAR S : 2006 - 2007 2007 - 2008 & 200 8 - 200 9 PAGE 2 OF 4 3. AFTER HEARING THE RIVAL SUBMISSIONS WE NOTED THAT IN THESE CASES IN EACH OF THE ASSESSMENT YEARS THE ASSESSING OFFICER NOTED THAT THE FORMS 15G /15H ACCEPTED BY THE BANK WERE NOT PROPER L Y FILLED IN AND THEREFORE HE REJECTED THE FORM S 15G/15H. IT WAS NOTED BY THE ASSESSING OFFICER THAT IN SOME OF THE FORMS THE APPLICANTS HAVE NOT MENTIONED THEIR PANS JURISDICTION UNDER WHICH THEY ARE ASSESSED AND PART II OF ALL THE FORMS IS BLANK AS THE BANK MANAGER CONCERNED HAS NEITHER PUT HIS SIGNATURE NOR FILLED THE DETAILS WHICH ARE REQUIRED TO BE FILLED UP B EFORE SENDING THE FORMS TO THE OFFICE OF THE JURISDICTIONAL CCIT/CIT. HE THEREFORE TREATED THE ASSESSEE IN DEFAULT AND RAISED THE DEMAND ON THE ASSESSEE INVOKING THE PROVISIONS OF SECTION 201(1A). WE ALSO NOTED THAT WHEN THE MATTER WENT BEFORE THE LD. CI T(APPEALS) LD. CIT(APPEALS) CONFIRMED THE ORDER OF THE ASSESSING OFFICER IN OUR OPINION THERE IS MERELY A TECHNICAL VENIAL. NO DOUBT EVERYBODY SHOULD KNOW THE LAW . THE PROVISIONS OF THE INCOME TAX ARE COMPLEX AND ARE SUBJECT TO VARYING INTERPRETATION. MERELY THE FORMS HAVE NOT BEEN PROPERLY FILLED UP OR THE PARTIES HAVE NOT FILLED UP THEIR PANS DOES NOT MAKE THE ASSESSEE IN OUR OPINION LIABLE TO DEFAULT. FROM THE PROVISIONS OF SECTION 194A IT IS CLEAR THAT THE ASSESSEE BEING A BANKER HAS TO DEDUCT TA X ON THE INTEREST PAID BY HIM EXCEPT WHERE THE AMOUNT OF SUCH INTEREST DOES NOT EXCEED RS.10 000/ - DURING THE YEAR. SECTION 1 97 A ( 1A ) PROVIDES AN EXCEPTION TO ASSESSEE S BANKER TO PAY INTEREST WITHOUT DEDUCTING TAX IN CASE OF A PERSON NOR BEING A COMPANY OR A FIRM IF SUCH PERSON FURNISHES TO THE BANKER A DECLARATION IN WRITING IN DUPLICATE IN THE PRESCRIBED FORM AND VERIFIED IN THE PRESCRIBED MANNER TO THE FACT THAT THE TAX ESTIMATED ON TOTAL INCOME OF THE PREVIOUS YEAR WILL BE NIL OR WILL NOT EXCEED THE PRESCRIBED LIMIT OF INCOME WHICH IS NOT CHARGEABLE TO INCOME - TAX. THE FORM IN THIS REGARD HAS BEEN PRESCRIBED UNDER RULE 29C WHICH STATES THAT A DECLARATION UNDER SUB - SECTION (1) OR UNDER SUB - SECTION (1A) OF SECTION 197A SHALL BE IN FORM NO. 15G AND SHALL BE VERIFIED IN THE MANNER INDICATED THEREIN. SIMILARLY IF THE PERSON WHO IS IN THE AGE OF 65 YEARS OR MORE HE CAN MAKE THE DECLARATION IN FORM NO. I.T.A. NO S . 317 318 & 319 / KOL ./20 1 3 ASSESSMENT YEAR S : 2006 - 2007 2007 - 2008 & 200 8 - 200 9 PAGE 3 OF 4 15H. FROM THE SAID PROVISIONS IT IS APPARENT THAT THE FORM HAS TO BE FURNISHED BY THE CONCERNED CONCERN WH O HAS EARNED THE INTEREST INCOME FROM THE BANKER. THE BANKER HAS ONLY TO DELIVER ONE COPY OF SUCH DECLARATION ON OR BEFORE 7 TH DAY OF THE MONTH NEXT FOLLOWING THE MONTH IN WHICH THE DECLARATION IS RECEIVED BY THE BANKER. IF AN INDIVIDUAL WHO IS RECEIVED IN TEREST HAS COMMITTED THE DEFAULT NOT FILLING THE FORM PROPERLY IN OUR OPINION THE ASSESSEE CANNOT BE MADE LIABLE FOR THE DEFAULT OF THE THIRD PARTY. THE ASSESSING OFFICER IN OUR OPINION MUST GIVE AN OPPORTUNITY TO THE ASSESSEE TO GET THE DEFECT REMOVED . THE BANKER CANNOT BE ENTERED INTO THE SHOES OF THE ASSESSING OFFICER. WE THEREFORE IN THE INTEREST OF JUSTICE SET ASIDE THE ORDER OF THE LD. CIT(APPEALS) IN EACH OF THE ASSESSMENT YEARS AND RESTORE THIS ISSUE TO THE FILE OF THE ASSESSING OFFICER WITH THE DIRECTION THAT THE ASSESSING O FFICER SHALL GIVE AN OPPORTUNITY TO THE ASSESSEE S BANKER TO GET THESE FORMS RECTIFIED FROM THE PARTIES FROM WHOM THE AS SESSEE HAS RECEIVED THESE FORMS AND THEREAFTER PASS AN ORDER IN ACCORDANCE WITH LAW. 4 . IN THE RESULT ALL THE APPEAL S FILED BY THE ASSESSE E STAND ALLOWED FOR STATISTICAL PURPOSES . ORDER PRONOUNCED IN THE OPEN COURT ON 29.04. 201 5 . SD/ - SD/ - RAJPAL YADAV P.K. BANSAL ( JUDICIAL MEMBER) ( ACCOUNTANT MEM BER) KOLKATA THE 29 TH D AY OF APRIL 201 5 COPIES TO : (1) UNITED BANK OF INDIA CHINSURAH BRANCH TOWN GUARD ROAD CHINSURAH HOOGHLY - 712 101 (2) INCOME TAX OFFICER T.D.S. HOOGHLY AAYAKAR BHAWAN KHADINAMORE CHINSURAH HOOGHLY - 712 101 I.T.A. NO S . 317 318 & 319 / KOL ./20 1 3 ASSESSMENT YEAR S : 2006 - 2007 2007 - 2008 & 200 8 - 200 9 PAGE 4 OF 4 (3) COMMISSIONER OF INCOME - TAX (APPEALS) (4) COMMISSIONER OF INCOME TAX ( 5 ) THE DEPARTMENTAL REPRESENTATIVE ( 6 ) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOM E TAX APPELLATE TRIBUNAL KOLKATA B ENCHES KOLKATA LAHA/SR. P.S .